
CEIOPS conference focuses on Solvency II and Lamfalussy
Solvency II, Lamfalussy and the IORP directive were discussed in depth as CEIOPS held its third annual conference this week
FRANKFURT – Representatives of the European insurance and pensions industries met regulators at the third annual Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) conference in Frankfurt this week, to discuss the regulatory challenges that lie ahead.
Portuguese finance minister Carlos Costa Pina opened the conference by underlining the progress on the Lamfalussy process, with the implementation of its first, second and third levels, but emphasised the need for enhanced co-operation between CEIOPS, the Committee of European Banking Supervisors and the Committee of European Securities Regulators.
Johnny Åkerholm, chairman of the Inter-Institutional Monitoring Group (IIMG), said it was important to streamline the consultation process and cut inefficiencies in processing stakeholder input. He added that practical problems of harmonisation need to be ironed out – suggesting the possibility that Level 1 principles are too detailed and stressing the importance of the qualified voting procedure for Level 3 committees.
Panel discussions focused on Solvency II and the results of the third quantitative impact study (QIS3), which have now been published.
There were calls for a downward revision of the calibration of non-life underwriting risk, further guidance on the calculation of the solvency capital requirement and recognition of the lessons learned from the Capital Requirements Directive and the Markets in Financial Instruments Directive.
The final panel looked at the framework for occupational pensions –an area that has received much less attention than Solvency II’s insurance mandate – and the directive on institutions for occupational retirement provision (IORP).
The EU commissioner for the internal market and services, Charlie McCreevy, concluded the conference with a speech focusing on Solvency II, the Lamfalussy process and the IORP directive.
McCreevy said progress on promoting cross-border business through the IORP was obstructed by national level social and labour law requirements, obscuring whether the IORP had reached its potential.
He also stressed the challenge posed by Solvency II to the pensions industry, and said that CEIOPS had been asked to review Solvency II’s impact.
McCreevy highlighted regulatory readiness to punish non-compliance both with the IORP and the different levels of Lamfalussy implementation – while highlighting the challenges posed by the significant innovations of Level 3.
The commissioner went on to say that Level 3 compliance by European institutions needed to be enhanced by a two-step procedure. Firstly, through the production of future targets for Level 3 committees after consultation with the Ecofin council and the European Parliament, and, secondly, through Level 3 committee reports to European institutions, evaluating their performance in hitting or missing the targets set.
McCreevy said Solvency II is a “key political priority”, praising the 20% industry participation level for QIS3 and highlighting the need to maintain this level. He also noted the tight timetable set for CEIOPS to produce the draft specifications for its next quantitative impact study (QIS4) by December 20.
McCreevy pointed out the need for an effective “group support” regime for Solvency II compliance – with advice on the practical measures to ease group supervision.
“With the review of the Lamfalussy process and the Solvency II directive, we have a golden opportunity to boost the competitiveness of the European insurance sector, improve the soundness of our supervisory framework, and offer better and cheaper products to European consumers,” he said.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
JP Morgan, Eurex push for DLT-driven collateral management
The high-stakes project could be a litmus test for the use of blockchain technology in the capital markets
Start planning for post-quantum risks now
Next-gen quantum computers will require all financial firms to replace the cryptography that underpins cyber defences, writes fintech expert
US Treasury clearing mandate poses riddle for Asian markets
Participants unclear on how far the rules will reach, or the role of inter-affiliate exemptions
Looming US Basel endgame redraft sparks calls to save IRB
Experts say 20 years of data makes credit risk models more appropriate than standardised approach
Cool heads must guide financial regulation of climate risk
Supervisors can’t simply rely on ‘magical thinking’ of market discipline, says Sergio Scandizzo
Op risk data: Two Sigma pays the price for model mess
Also: KuCoin’s AML fail, Angola bribes bite Trafigura, and Trump’s green scepticism. Data by ORX News
‘More questions than answers’ in race to build repo plumbing
Complexity could slow development of matching and credit-checking tools for US Treasury trades
How Citi moved GenAI from firm-wide ban to internal roll-out
Bank adopted three specific inward-facing use cases with a unified framework behind them